Evaluating Project Decisions Based on Capital Budgeting and Capital Structure Analysis: A Case Study on Access Indonesia Pte Ltd

Abstract

This report is a study case of evaluating a project and the decision making in accepting or rejecting a project of Access Indonesia Pte Ltd. The project is evaluated by using capital budgeting analysis, specifically the discounted cash flow techniques. Before proceeding to capital budgeting analysis, the capital structure of the company is analyzed first in order to identify the required rate of return. The result of the analysis shows that even with the relatively high required rate of return, the project is feasible and can be accepted.